Product Costing and

Manufacturing Accounting
A7.3
Introduction

01INTRO- 1
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 Objectives
 To learn how Product Costing &
Manufacturing Accounting integrate
with other systems
 To understand the relationship between
Product Costing & Manufacturing
Accounting

01INTRO- 2
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 System Integration
ERPx
Enterprise Requirements, Planning, and Execution

Strategic
Business
Plan
Product Data Management/
Product Costing
Configuration Management

Inventory Management
Tactical Resource Requirements Planning
Sales Order Processing Plan

Forecasting

Distribution Requirements Planning

Rough Cut Capacity Planning
Master Production Schedule Operational
Plan Capacity Requirements Planning
Material Requirements Planning

Purchasing

Shop Floor Control Execution Finite Scheduler

Manufacturing Accounting

01INTRO- 3
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 Cost Accounting - Purpose
 Cost Reporting
a) What did it really cost us?
 Variance reporting
a) Actual vs. Standard
 Provide detail information on
a) Material
b) Labor
c) Overhead
 Aid in price determination
 Complement ‘Financial Accounting’
01INTRO- 4
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 Prerequisite Information
 Item Master File - G/L Class Code
 Branch/Plant - Cost
- Cost Method
 Manufacturing Values - Accounting Cost Quantity
 Bill of Material - Item
- Quantity
 Routing - Scrap
- Run Hours
- Setup Hours
01INTRO- 5
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 Costing / MFG. Accounting
Relationship
Item Item Bills of
BR/PL Costs Routing
Master Materials

Process Work Orders Cost Roll-Up

Parts Routing W.O

Cost
List Instructions File Components
Manufacturing
Accounting
Accounting Tables
General G/L G/L
Ledger Posting Transactions
01INTRO- 6
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01INTRO- 7
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